This session will provide a detailed overview on how to gain greater visibility into and control over nonsourced, noncontracted, and unplanned purchases. According to the Hackett Group, 15% of indirect spend is never sourced and is difficult to manage. How do employees buy things not found in the company catalog? How do you manage one-off long-tail suppliers? Is your P-Card program delivering on its promises? Participate in this session to learn more, see a live demo, and speak with the experts to get started with Ariba Spot Buy.

1. Jason Seibert, P2P Transformation Program Manager, Westinghouse
Sebastian Englich, Head of Procurement Solutions Excellence, SAP
Marc Hoessels, Director Indirect Tax, PWC
Richard Downs, Vice President, Spot Buy Europe, SAP Ariba
June 14, 2016
Spot Buy: Experience Convenience and Take
Control of Your Non-contracted Spend
Public

2. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public
Important information
This information reflects the status of SAP Ariba solution planning as of June 2016. All such
information is the Confidential Information of SAP Ariba (per the contract between our companies),
and must not be further disclosed, as stated in the confidentiality clause of that contract. This
presentation contains only intended guidance and is not binding upon SAP Ariba to any particular
course of business, product strategy, and/or development. Its content is subject to change without
notice. SAP Ariba assumes no responsibility for errors or omissions in this document. SAP Ariba
shall have no liability for damages of any kind including without limitation direct, special, indirect,
or consequential damages that may result from the use of these materials.

3. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public
Agenda
3Public© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public
Introduction – Richard Downs
 Challenge finding and buying nonsourced goods
 Common spot buy categories
 Introducing Ariba Spot Buy
Panel Q&A
 Jason Seibert,
P2P Transformation Program Manager, Westinghouse
 Sebastian Englich,
Head of Procurement Solutions Excellence, SAP
 Marc Hoessels,
Director Indirect Tax, PWC

4. Introduction to Ariba Spot Buy

5. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Public
What can this mean for your business?
Source: “Shining a Light on ‘One-Off’ Purchases,’” Procurement Leaders, 2016.
TACTICAL
• 20% of indirect spend
• 80% of suppliers
• 1-4 weeks
STRATEGIC
 80% indirect spend
 20% of suppliers
 4+ weeks
Suppliers
20% 40% 60% 80% 100%
$$$$
$$$
$$
$
15% of indirect goods are from
one-off purchases resulting in
 Inefficient purchasing
 Reduced transparency
 Higher transaction costs
 A long tail of one-off suppliers
SPOT BUY
• 15% of indirect goods from strategic and tactical spend
• Non-sourced/non-contracted
• Not in company catalogue
• Need immediately

6. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Public© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Public
Common spot buy categories
Example spot buy purchases
Executive
admin
Find a replacement for
a power cord that the
boss left at the hotel on
the last trip
VP of
procurement
Reduce backlog on
tactical purchase
requests to improve
customer satisfaction
Facilities
manager
Replace a broken
security camera that
was not in the company
catalogue
Office
furniture and
supplies
Electrical and
test
equipment
Technology
and
accessories
MRO and
industrial
supplies
Facilities and
maintenance
Other urgent
and
unanticipated
items

7. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Public
How Ariba Spot Buy Works
Buyer Supplier
Supplier ships goods
Buyer protection ensures customer
receives items as promised
OC sent and
validated
Purchase order (PO )
2
Buyer receives order
confirmation (OC)
and advanced ship
notice (ASN)
PO validates
inventory and price
ASN sent
3
Buyer receives invoice
purchase request (PR)
approval workflow
1
Company
catalogue
Ariba Spot Buy
catalogue
SAP Ariba procurement solutions
4
ship
Spot buy catalogues
Marketplaces
Network
sellers
Ariba Spot Buy supply
Supplier sends invoice

8. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Public
• USA Live as of September 2015
• United Kingdom & Germany scheduled for Pilot in June 2016
• General Availability scheduled in United Kingdom & Germany for
September 2016
• France Design Partnership beginning Q4 2015
• Additional European countries as defined by clients
European Rollout Plan

9. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Public
Spot Buy panellists
Sebastian Englich
Head of Procurement
Solutions Excellence
Marc Hoessels
Indirect Tax Technology
Jason Seibert
P2P Transformation Manager

10. What was the remit of work
between PWC and Ariba Spot Buy?

11. 13Public
The PwC approach
4
System
walkthrough
Review of the SAP
Ariba solution in its
live environment

12. 14Public
Approach and high-level findings
PwC has delivered the report to provide the users of the Ariba Spot Buy Feature with a high-level
overview of the VAT/customs, accounting, corporate tax & legal impact in the countries in scope
which are linked to the use of Ariba Spot Buy.
Ariba Spot Buy Feature acts
as a “Data Platform.” It
offers its users an overview
of the applicable country-
specific invoicing
requirements as well as
unique tools to meet their
audit trail requirements,
provided they implement
and document these
properly.
VAT
Ariba Spot Buy Feature
allows its users, based on the
information available and
provided they implement it
properly, to organize their
internal control framework.
Note that the posting of the
invoices in the client’s
accounting system will be the
client’s responsibility.
Accounting
No import or export transactions
are currently envisaged.
Nevertheless, Ariba Spot Buy
Feature offers its users customs
relevant information to allow
them to do the relevant checks
regarding e.g. Denied Party Lists
Customs
Obligatory legal information
around obligations as
information society services
provider are available upon
request.
The contractual documentation
reflects a privacy policy in line
with the principles of EEA and
Swiss privacy legislation.
Legal
No withholding tax obligations or
obligations for special regimes are
applicable considering that Ariba
Spot Buy Feature is not involved in
the payment process.
Corporate tax
A standard archiving period
of 18 months is foreseen.
Nevertheless, Ariba Spot Buy
Feature offers users, as an
additional and optional service,
the possibility to opt for a longer
archiving period to meet local
retention obligations.
E-archiving

13. What are the business issues Ariba Spot
Buy solves for your company?

14. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 16Public
Ariba Spot Buy admin toolShopping cart Shopping cart
Non-catalog item request versus Ariba Spot buy
Shopping Cart
SRM catalog
product not
found
Close catalog
and create SRM
material request
restricted items
ERP
Buyer
receives
request
If demand
isn´t clearly
described
Buyer
completes
MM
request
LoB IT
has to
approve
Request offer from
preferred Supplier
MM team
complete
creation
MM number
provided to
Requester
Available on
Ariba Spot
Buy but
restricted
Request restricted
Ariba Spot Buy item
in catalog
Ariba Spot Buy
admin receives
request
Rejected
Shopping Cart
Shopping cart
creation
Shopping cart
creation
Former SRM
Ariba Spot Buy
Approved
1
1
2 3
2
4 5 6 7
3
 Long processing time
 High process costs due
to manual work
 Bad end-user experience
 Second process to be
maintained
 Fast processing time
 Less process costs
 End-user friendly
 No parallel process to
be maintained
Requester
Requester

15. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 17Public
Ariba Spot Buy status at SAP
Full deployment in nine
SAP entities
 SAP Labs
 SAP Global Marketing
 Sybase
 SAP Industries
 SAP Public Services
 SAP America
 SAP Ariba
 Sybase365
 SAP SuccessFactors
User feedback: The overall feedback has been very positive.
 Fantastic! That was easy and quick. I did not feel like I bought this from a third party at all.
 I had been unable to expense ANYTHING and often had to pay out of pocket, so the spot buy is a great option.
 This product is similar to the current shopping system, so if you understand how that operates this is very simple to work with
Category
 IT and facility
Users
 ~ 15,000 users live
Ordered items
 4,200
Shipping
 24-72 hours

16. 18Public
Ariba Spot Buy – current state
Benefits realized
 Control and visibility of tail spend versus traditional
P-Card
 Avoidance of low dollar invoice churn
 Contract opportunities for Ariba Procure-to-Pay
 Market intelligence – fair value determination
 Ariba Procure-to-Pay adoption and change
management
 Soft landing to Ariba Network suppliers for
Ariba Spot Buy
 Path to P-Card orders
 Power user empowerment

17. 19Public
The case for Ariba Spot Buy
Top 10 Ariba Procure-to-Pay commodity categories
Opportunity
Consolidate fragmented tail spend using
Ariba Spot Buy
 Average transaction size of the remaining 15%
of Ariba PO spend is €560
 There is little value in sourcing this tail spend
 Invoice churn can be avoided and processing
efficiencies gained

18. What benefits do you gain from
leveraging Ariba Spot Buy?

19. 21Public
The case for Ariba Spot Buy
Supplier rationalization
Every purchase with
Ariba Spot Buy supports
and sustains the progress
of this key objective.

20. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 22Public
Example benefits
 Improved user experience by adding additional and easy-to-filter/select product content
 No or less buyer involvement for low-value items
 Streamlined order process by reducing interfaces
 No catalog and master data maintenance effort
 Partially unmanaged spend now running through procurement flow
 Reduction of vendor management and long-tail supplier costs
 Much faster shipping and turnaround time (home shipped items)
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 22Public

21. What types of items are people buying
through Ariba Spot Buy?

22. 24Public
The case for Ariba Spot Buy
Everyday purchase examples
Forward/Reverse
Buzzer / Club Car
101685
PanaVise 301
Standard PanaVise
Under Armour Men's
HeatGear
ArmourVent; Skull
Cap
Hobart Leather
Welding Jacket
Yamaha G22 Tinted
Windshield 2003-'06
Folding Style
GRAY
Rubbermaid
Industrial
Commercial
Brute Trash
BRADY 50944 Grip-
Cinching Cable
Lockout, 4 Locks
BUDDY PRODUCTS
0800-1 Time Card
Rack, 25 Compartment
Little Giant 5 ft.
Aluminum
Platform
Stepladder
RIDGID VF4000 Shop
Vac Filter 1 Layer Wet
Dry 5-20
IDEAL 45-177
Wire Stripper
Irwin Hanson 53228
15pc. Multispline
Screw Extractor
Swingline GBC
Thermal Laminator,
Fusion 3100L, 12
MFMC 400
Multifunction
Manager Chair
Renata
CR2450N 3V
Lithium Coin
Battery +
10 Panel
Desktop
Organizer
Canon PowerShot
Camera
Protective
iPhone Cases

23. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 25Public
Example purchases
Thunderbolt
Mini DisplayPort DP To VGA
Everpure
cartridge
Wilson weBoost EQO "Echo"
Home Cell Phone Booster
Dell Widescreen
LED Monitor
SLOAN
Sensor Assembly
Wacom Cintiq DTK1300
Microsoft Surface
Docking Station
DAYTON Standard
Platform Truck
Pfaltzgraff Pearl
80-piece flatware set
CAT 6 cable

24. What's next for your use of
Ariba Spot Buy?

25. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 27Public
Adoption strategy and next steps
 Continuous change management and marketing of the solution is important to help spread the word
about Ariba Spot Buy
 Regular reviews of what the users are buying will help build supplier strategies and trigger ideas of
how to further utilize the solution
 After initial implementation, it was a great benefit having a workshop with the Ariba Spot Buy team
and key users of the solution
 Customers emphasized the benefits of Ariba Spot Buy in 2015 survey results
1. Finalization of Germany and UK road map
2. Addition of 15,000 employees
3. Establishment of fully automated reconciliation process

26. 28Public
Ariba Spot Buy – Next steps and considerations
Moving forward
 U.S. expansion
 EMEA pilots
 Automation of ghosted P-Card
reconciliation
Things to consider
 Know your master data
 Manage your perceptions
 Think outside the box
 Voice of the user

27. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 29Public
Q&A and next steps
SIGN UP
for an Ariba Spot Buy
spend assessment
START
using Ariba Spot Buy
today
WATCH
Ariba Spot Buy
video on YouTube
https://youtu.be/LuGEJPIIzdE
Richard Downs
Vice President, Ariba Spot Buy
Europe
+44 758 448 8762
richard.downs@sap.com
Sebastian Englich
Head of Procurement
Solutions Excellence
+49 151-16809848
sebastian.englich@sap.com
Jason Seibert
Procure to Pay (P2P) Transformation
Program Manager
+1 412-374-2590
seiberja@westinghouse.com
Marc Hoessels
Director Indirect Tax, PWC
+32 496 513080
marc.hoessels@be.pwc.com

28. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 30Public
Please complete session survey
Locate Session Click Surveys Button Select Breakout Survey Rate Session

29. Appendix

30. What controls have you placed on Ariba Spot
Buy: categories, spend, users, suppliers?

31. 33Public
Westinghouse overview
Who we are
 Westinghouse Electric Company is the world's
leading supplier of safe and innovative nuclear
technology.
 WEC global headquarters is located in Cranberry
Township, Pennsylvania
 Driven by a powerful history, experience, and
groundbreaking ideas
 Focus on safety and sustainability
 Fueled by a strong team of 11,000 employees
around the globe
Procurement landscape
 SAP shop (20+ years) – SAP ECC 6 EHP7 SP 9
 Ariba Procure-to-Pay
 Ariba Invoice Professional
 Ariba Contract Management
 Ariba Sourcing Professional
 Ariba Spend Visibility
 SAP Business Process Outsourcing
 High level of integration between SAP and
SAP Ariba solutions
 Ariba Spot Buy journey began in May 2015